Maine Bureau of Consumer Credit Protection (BCCP)

Overview

The Maine Bureau of Consumer Credit Protection (BCCP) is the official state regulator responsible for overseeing money transmission and consumer credit-related activities in Maine. Operating under the Department of Professional and Financial Regulation (DPFR), the BCCP administers the state's "Money Transmitters Act" (32 M.R.S. Chapter 80, Subchapter 1) and implements the recently adopted Money Transmission Modernization Act.

The BCCP protects Maine consumers by:

• Issuing and renewing money transmitter licenses
• Conducting compliance examinations
• Responding to consumer complaints
• Enforcing state money transmission regulations
• Regulating check cashers, ATM operators, and virtual currency activities

All applicants for money transmitter licenses must apply through the Nationwide Multistate Licensing System (NMLS).

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

BCCP Authority

The BCCP administrator possesses statutory authority to:

• Examine Records: Cash-dispensing machines, books, accounts, and records of money transmitter operators
• Conduct Investigations: Determine compliance with applicable state regulations
• Request Information: Access to documents and materials relevant to licensed activity
• Conduct Compliance Examinations: Periodic and targeted examinations of licensees

Compliance Examination Program

The BCCP conducts:

• Periodic Examinations: Regular supervisory reviews of money transmitter operations
• Compliance Audits: Verification of adherence to net worth, bonding, and operational requirements
• Consumer Complaint Investigations: Response to complaints filed against licensees

Examination Standards

• Book, account, and record examination per 32 M.R.S. §6108
• Assessment of financial condition and operational compliance
• Review of consumer protection and dispute resolution procedures
• Verification of AML/KYC procedures and sanctions screening

Regulatory Guidance

The BCCP provides:

• Money Transmitter Licensing Page
• Application checklists and forms
• Frequently asked questions (FAQs)
• Consumer protection resources
• Consumer Complaint Portal

Consumer Rights

Maine law provides consumer protections requiring money transmitters to:

• Disclose all fees and exchange rates at point of transaction
• Provide clear disclosure of transmission timelines
• Maintain adequate capital and bonding for consumer protection
• Implement fair and prompt dispute resolution procedures
• Safeguard consumer funds

Virtual Currency Kiosk Protections

With the 2025 passage of "An Act to Regulate Virtual Currency Kiosks" (signed by Governor Mills as emergency legislation):

• Daily Transmission Limits: Restrictions on daily transmission amounts through kiosks
• Fee Caps: Maximum allowable fees and exchange rate markups
• Consumer Redress: Statutory remedies for consumers harmed by kiosk fraud
• Unhosted Wallet Requirement: Money transmitters must employ technologies ensuring Maine consumers own and control their virtual wallets

Consumer Complaint Process

Consumers can file complaints through the BCCP Consumer Complaint Portal or by contacting the bureau directly:

• Phone: 207-624-8527 or 1-800-332-8529 (toll-free in Maine)
• Email: [email protected]

Regulatory Powers

Grounds for Enforcement Action

Under 32 M.R.S. Chapter 80, the BCCP may initiate enforcement action for:

• Failure to obtain required license before commencing money transmission
• Violation of net worth or surety bond requirements
• Violation of operational or consumer protection standards
• Material misrepresentation in license application
• Failure to comply with examination orders or information requests
• Violation of anti-money laundering or sanctions regulations
• Unsafe or unsound business practices
• Violations of consumer protection requirements

Enforcement Tools Available

1. License Denial: Refusal to issue initial or renewal license
2. License Suspension: Temporary restriction of operational authority
3. License Revocation: Permanent termination of authorization to conduct money transmission
4. Consent Orders: Negotiated compliance agreements with consent decrees
5. Cease and Desist Orders: Commands to stop unlicensed or illegal activity
6. Civil Penalties: Monetary fines imposed for non-compliance
7. Restitution Orders: Compensation to affected consumers

Enforcement Procedures

• Investigation: BCCP investigates complaints and compliance violations
• Notice and Opportunity: Violators given notice and opportunity to respond
• Public Enforcement Actions: Enforcement Actions are published on BCCP website
• Consumer Redress: Restitution prioritized in settlement agreements

Notable Enforcement Actions

Bitcoin Depot Settlement (2024-2025):

The BCCP reached a $1.9 million settlement with Bitcoin Depot for virtual currency kiosk fraud and consumer losses. The settlement agreement granted Bitcoin Depot a money transmitter license conditional on:

• Consumer restitution for fraud victims
• Compliance with virtual currency kiosk regulations
• Implementation of enhanced consumer protection measures

Regulatory Role and Function

Legal Foundation

Primary Statutes

32 M.R.S. Chapter 80, Subchapter 1 (Money Transmitters Act):

• Requires licensing for entities engaged in money transmission
• Defines "money transmitter" and scope of regulated activities
• Establishes financial requirements, surety bond mandates, and operational standards
• Provides examination and enforcement authority to the BCCP administrator

Money Transmission Modernization Act:

• Recent legislative enactment adopted in 2025
• Modernizes regulation framework and compliance procedures
• Effective date: March 8, 2025 (Rule 709 rev)

Definition of Money Transmission (32 M.R.S. §6101)

Under Maine law, a "money transmitter" includes any entity that:

• Sells or issues payment instruments
• Receives money for transmission
• Transmits money within the U.S. to locations abroad by any means (payment instrument, wire, facsimile, or electronic transfer)

Regulatory Framework

The BCCP operates as a bureau within the Department of Professional and Financial Regulation, giving it binding legal authority to:

• Grant and deny licenses
• Impose conditions on licenses
• Conduct examinations and audits
• Issue enforcement actions
• Assess penalties and fines
• Revoke licenses for non-compliance

Superintendent: William Lund, Superintendent of the Maine Bureau of Consumer Credit Protection

Licensing and Authorization Relevance

License Requirements

All entities providing money transmission services in Maine must obtain a money transmitter license from the BCCP prior to commencing operations.

Application Process

1. NMLS Application Required: All applicants must apply through the Nationwide Multistate Licensing System (NMLS) as of the Money Transmission Modernization Act implementation.
2. Application Materials Include:

• Company information and ownership structure
• Personal information regarding principals, managers, and control persons
• Business plan and operational procedures
• Audited financial statements (see financial requirements below)
• Anti-money laundering (AML) and know-your-customer (KYC) compliance procedures
• Consumer protection policies

1. Character and Fitness Investigation:

• BCCP conducts investigation of all principals
• Focus on honesty, integrity, and fitness to operate a money transmission business
• Background checks required

License Validity and Renewal

• License Period: Annual; expires December 31 of each year
• Renewal Requirement: License must be renewed before expiration date
• Renewal Application: Submitted through NMLS with updated financial statements and compliance certifications

License Fees

Effective March 8, 2025, Rule 709 (rev) established new license and renewal fees for money transmitters. Requires verification from official sources Specific fee amounts to be confirmed with BCCP directly.

Net Worth Requirement

Minimum Net Worth: $100,000 plus $50,000 per branch location, with a maximum requirement of $500,000

Calculation:

• Base requirement: $100,000 (company net worth: assets minus liabilities)
• Per-branch: Additional $50,000 for each branch office or location
• Example: Single location = $100,000; two locations = $150,000; maximum cap = $500,000

Audited Financial Statement

• Requirement: CPA-prepared audited financial statement verifying company net worth
• Timing: Must accompany initial license application and renewal applications
• Purpose: BCCP verification of financial soundness and stability

Surety Bond Requirement

Bond Amount: $100,000 minimum

Bond Type: Irrevocable letter of credit or other similar security device (historically surety bond)

Bond Purpose: Runs to the BCCP administrator for the benefit of any claimants against the licensee to secure faithful performance of obligations

Recent Changes (Electronic Surety Bonds):

• Effective September 1, 2025: BCCP began receiving new and converted Electronic Surety Bonds (ESB) through NMLS
• Mandatory Transition Deadline: All existing Maine money transmitter licensees must convert to ESB format by January 31, 2026
• ESB transition part of Money Transmission Modernization Act compliance

Record Retention

• Money transmitters must maintain all books, accounts, records, and documents necessary to demonstrate compliance
• Minimum retention period: 3 years

Virtual Currency Regulation

The BCCP recognizes that entities offering to exchange, administer, or maintain virtual currencies may be subject to state regulation and licensing requirements.

Virtual Currency Definition:

Virtual currency is an electronic medium of exchange that does not have all attributes of real currencies, including cryptocurrencies such as Bitcoin and Litecoin, which are not legal tender and are not issued or backed by any central bank or governmental authority.

Virtual Currency Business Activity Licensing

Effective March 8, 2025, Rule 709 (rev) established licensing requirements for entities engaged in "virtual currency business activity," defined to include:

• Exchange services (converting virtual currency to fiat or vice versa)
• Administration of virtual currency wallets
• Custody or maintenance of virtual currency on behalf of consumers
• Transmission of virtual currency

Virtual Currency Kiosk Regulation

Maine's recent regulatory framework addresses the specific risks of virtual currency kiosks (automated machines allowing cash deposits for cryptocurrency purchases):

Key Requirements (2025 Legislation):

• Kiosk operators must obtain money transmitter license from BCCP
• Daily transmission amount limits
• Fee caps and exchange rate regulation
• Consumer fraud protections
• Transaction verification and identity requirements
• Unhosted wallet ownership protection (consumers must control their keys)

Cryptocurrency Compliance

Money transmitters handling virtual currency must comply with:

• Federal FinCEN money transmitter registration requirements
• Bank Secrecy Act (BSA) anti-money laundering obligations
• State money transmission licensing (32 M.R.S. Chapter 80)
• Maine's unhosted wallet provision for consumer protection
• Consumer disclosure and fair pricing requirements

Fintech Considerations

• Virtual currency business activity subject to same net worth and bonding requirements as traditional money transmitters
• NMLS application process covers both traditional and virtual currency transmissions
• Examination and supervision authority extends to fintech money transmission activities
• Consumer protection rules apply to cryptocurrency service providers

Payments and Money Movement Relevance

The Bureau Of Consumer Credit Protection has the following relevance to payments and money movement in United States:

Payment Systems Governed or Overseen

The Bureau Of Consumer Credit Protection does not directly operate payment systems. Its payment-related role includes:

Money transmitters, payment processors, and fintech companies operating in this jurisdiction require licensing or registration with this entity.

Relationship to Other Regulators

NMLS Integration

The BCCP participates in the Nationwide Multistate Licensing System (NMLS), a coordinated multi-state regulatory system allowing:

• Uniform application process across states
• Coordinated licensing and examination
• Information sharing between state regulators
• Streamlined renewal procedures

Multi-State Licensing

Money transmitters licensed in Maine often operate in multiple states. The NMLS facilitates:

• Single application for multi-state operations
• Coordination of state-specific requirements
• Uniform consumer protection standards
• Requires verification from official sources Information regarding formal interstate regulatory coordination agreements or memoranda of understanding specific to Maine

Reciprocal Examination Authority

Under the Money Transmission Modernization Act, Requires verification from official sources Maine may participate in shared examination protocols with other states for entities with operations across multiple jurisdictions.

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Bureau Contact Information

Mailing Address:

• Maine Bureau of Consumer Credit Protection
• 35 State House Station
• Augusta, Maine 04333

Secondary Office Address:

• 76 Northern Avenue
• Gardiner, Maine 04345

Phone Numbers:

• Main Line: 207-624-8527
• Toll-Free (Maine only): 1-800-332-8529
• TTY/Hearing Impaired: Maine Relay 711

Email: [email protected]

Online Resources

• BCCP Home Page
• Money Transmitter Licensing Page
• Money Transmitter Regulatory Framework
• Virtual Currency Information
• Laws and Rules
• Consumer Complaint Portal
• Enforcement Actions
• Licensing and Registration Information

Parent Department

Department of Professional and Financial Regulation (DPFR)

• DPFR Home Page
• DPFR Directory

Leadership

William Lund

• Title: Superintendent, Maine Bureau of Consumer Credit Protection
• Address: 35 State House Station, Augusta, Maine 04333
• Contact: Through BCCP main line (207-624-8527) or email ([email protected])

Requires verification from official sources Direct contact details for superintendent; contact through bureau channels recommended

Statutory References

• 32 M.R.S. Chapter 80 (Money Transmitters and Check Cashers)
• 32 M.R.S. Subchapter 1 (Money Transmitters)
• Rule 709 (rev) - License and Renewal Fees and Application Requirements (effective March 8, 2025)

Notes on Naming and Language